Question 1 (1 point) An income statement contains all of the…

QuestionQuestion 1 (1 point) An income statement contains all of the…Question 1 (1 point)         An income statement contains all of the following EXCEPTQuestion 1 options:  A)  revenues.  B)  assets.  C)  losses.  D)  expenses.  E)  gains. Question 2 (1 point)         Sales for a firm are $500,000, cost of goods sold are $400,000, and interest expenses are $20,000. What is the gross profit margin?Question 2 options:  A)  20.0%  B)  30.0%  C)  4.0%  D)  25.0%  E)  16.0% Question 3 (0.5 points)         An investment is said to be liquid if the investment:Question 3 options:  A)  has a large bid-ask spread.  B)  can easily be converted into cash.  C)  is traded on a stock exchange.  D)  has large day to day fluctuations in price. Question 4 (0.5 points)         The distinguishing feature of a corporation is that:Question 4 options:  A)  provides limited liability only to small shareholders.  B)  it is a legally defined, artificial being, separate from its owners.  C)  their is no legal difference between the corporation and its owners.  D)  it spreads liability for its corporate obligations to all shareholders. Question 5 (0.5 points)         Which of the following is/are an advantage of incorporation?Question 5 options:  A)  Access to capital markets  B)  Unlimited life  C)  Limited liability  D)  All of the above Question 6 (0.5 points)         Which of the following is NOT an advantage of a sole proprietorship?Question 6 options:  A)  Ease of setup  B)  Single taxation  C)  Limited liability  D)  No separation of ownership and control Question 7 (0.5 points)         Which of the following are subject to double taxation?Question 7 options:  A)  Sole proprietorship  B)  A and B  C)  Partnership  D)  Corporation Question 8 (1 point)         The ________ is a snapshot of the firm at a particular point in time.Question 8 options:  A)  statement of cash flows  B)  income statement  C)  statement of retained earnings  D)  balance sheet  E)  None of the above Question 9 (0.5 points)         A sole proprietorship is owned by:Question 9 options:  A)  one person.  B)  two of more persons.  C)  bankers.  D)  shareholders. Question 10 (0.5 points)         If you buy shares of Coca-Cola on the secondary market:Question 10 options:  A)  you buy the shares from another investor who decided to sell the shares.  B)  you buy the shares from the Federal Reserve.  C)  Coca-Cola receives the money because the company has issued new shares.  D)  you buy the shares from the New York Stock Exchange. Question 11 (0.5 points)         What type of company trades on an organized stock exchange?Question 11 options:  A)  A limited liability company  B)  A public company  C)  A private company  D)  An “S” corporation Question 12 (1 point)         • You are a shareholder in a C corporation that has income before taxes of $8million.• Once the firm has paid taxes, it will distribute the rest of its earnings to itsshareholders as a dividend.• There are 1 million shares outstanding.• Assume the corporate tax rate is 35%, and the personal tax rate on dividendincome is 15%.• As a shareholder with 1000 shares, how much will you receive after all taxes arepaid?Question 12 options:  $3500  $4000.00  $4420.00  None Question 13 (0.5 points)         In a corporation, the ultimate decisions regarding business matters are made by:Question 13 options:  A)  investors.  B)  debt holders.  C)  the Board of Directors.  D)  shareholders. Question 14 (0.5 points)         If you buy shares of Coca-Cola on the primary market:Question 14 options:  A)  you buy the shares from the New York Stock Exchange.  B)  Coca-Cola receives the money because the company has issued new shares.  C)  you buy the shares from the Federal Reserve.  D)  you buy the shares from another investor who decided to sell the shares. Question 15 (1 point)  Saved      Using financial information to aid in decision making is calledQuestion 15 options:  A)  “what-if” analysis.  B)  managerial economics.  C)  financial analysis.  D)  factor analysis.  E)  quantitative analysis.  BusinessFinanceFIN 123456Share Question